In October 2019, the government released a controversial bill as a way to stop criminal gangs using cash to purchase, cars, jewellery and houses, to launder their gains from illegal activities and put a stop to tax evasion.
The bill has passed the Lower House, but will not become law until the Senate inquiry looks into the proposed laws.
This bill will criminalise business cash payments above $10,000. It will become a criminal offence to make or accept the payment of $10,000 or more, with penalties of up to two years of imprisonment and a $25,200 fine.
Although many oppose it, the Morrison government is set to win support from Labor to pass the controversial crackdown.
This bill has been criticised by many and the ones that will be directly affected are tradespeople, pensioners, and some ethnic communities that have saved up cash over a long period of time, some argue that this is an invasion on privacy and taking away the freedom of choice for those who do not believe in banks.
The cash payment limit will apply to the total price of the goods or services, regardless of whether the price is split into a series of payments over time.
The proposed law would apply to all payments made to businesses with an ABN for goods or services, affecting major purchases like cars, boats, housing and building renovations.
The Government has said that this bill would not apply to individual-to-individual transactions, such as private sales where the seller does not have an ABN, or cash payments to financial institutions. The proposed law also does not currently apply to digital currencies such as bitcoin.
We will keep you updated on changes or once the bill has been legalised.
If you have any more information on this topic or need help with your tax and accounting, then please call us or email us at mail@dolmanbateman.com.au
Disclaimer
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice
